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Franchising is the practice of using another firm's successful business model.

It can be exclusive, nonexclusive or 'sole and exclusive'.

Franchising is a faster, cheaper form of expansion than adding company-owned stores

A franchisee is an individual who purchases the rights to use a companys trademarked name and business model to do business.

A franchisor is a company that sells the right to use its name and/or operating systems

The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

Regulations in India

India is, however, one of the biggest franchising markets because of its large middle-class of 300 million who are not reticent on spending and because the population is entrepreneurial in character

A franchise agreement is a contract between the franchisor and the franchisee governed by the Contract Act 1872 and the Specific Relief Act, 1963.

Why Subway ?
The SUBWAY franchise was named the #1 Global Franchising Opportunity by Entrepreneur Magazine in 2008.

Worldwide Growth- As a SUBWAY store owner, youll be part of the worlds largest restaurant chain and one of its most recognized brands, with the support and experience that goes along with it a brand that keeps customers coming back for better-for-you meals made just the way they want.

History of Subway
The first store was opened in Bridgeport in August, 1965

By 1974, the duo partnership with his friend peter owned and operated 16 submarine sandwich shops throughout world. Today, the SUBWAY brand is the world's largest submarine sandwich chain with more than 34,000 locations around the world.
Today Subway is now in 92 Countries

Support Network- When you join the SUBWAY Family, youll get world-class support before you open your business, continuing as you sell your first sandwich and beyond. The franchise support system features: Training Product development Advertising Purchasing cooperative Field support, and much more! 24 hour potential with hot menu items Flexible floor plans Simple operations, no frying or grease Trusted brand recognition Well trained team of people striving to exceed customers needs Dedicated headquarters personnel and local support network

Subway Franchisee Requirements

Total Investment Franchise Fee Royalty Fee $84,300 - $258,300 $15,000 8%

Financial Requirement
Net Worth Liquid Capital 50 percent of investment No minimum requirement

Franchisee Qualifications An entrepreneurial spirit with a willingness to follow an established system while maintaining a sense of urgency and innovation

Financing Assistance Equipment leasing programs; franchise fee assistance for minority franchisees

The company provides:

Access to formulas and operational systems Store design and equipment ordering guidance Training programmed Operations manual Representative on-site during opening Periodic evaluations and ongoing support Informative publications

Interview of Ashwin Dhanuka(Franchisee)

Ashwin dhanuka initiated franchising in the year 2005 when he migrated to India from Australia. He has done his MBA in entrepreneurship and has a keen interest in food and general fitness. His risk taking nature and desire for independence convinced him towards entrepreneurship and particularly towards franchising.

Interview Questions and Answers

Why you want to be a franchisee and tell about your experience so far? Enter into franchising due to keen interest in meals and subway being the prevalent brand. Moreover franchising is viewed as sought after entrepreneurs aspiring field. To be able to take care of ones niche interests and to be to succeed in franchising your customer service should be at par and you should be able to satiate their demand by customization. The challenges faced by franchisee were the lack of capital coupled with unawareness among the consumer made it tough at the inception. But as the time progressed it become easier.


What is king of support that is extended by franchisor to franchisee by subway? The former provides all stores with operational directions and tips on improving business whether, it is in the form of introducing new products or through training and providing best practice examples.

Lastly on being asked about advice for budding entrepreneurial set up ? Franchising is a good blend of owning your independent business whilst receiving support from the franchisor. Yes, there are restrictions in running operations to ensure standards remain high, and you cannot decide to take drastic steps, but knowing there is a franchisor ready to support you always, makes it worthwhile. My advice for potential entrepreneurs is, do your research and study the franchisee model carefully, because once youre in it, you cannot have second thoughts; it is not like flicking an on/off switch!

Moreover the he also conveyed that Franchising is dream come true for many of those who aspire to have their own business. But accordingly it has some inherent disadvantages with respect to adhering to standards and as an individual you cannot afford to take drastic steps. An individual who is struggling to enter the franchise setup has contemplated thoroughly because you dont options and no second thoughts. The uniformity associated with respect to running the franchise makes it indicating and confines the entrepreneurial spirit of franchisee.